> For the complete documentation index, see [llms.txt](https://docs.coinlocally.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.coinlocally.com/perpetual-contracts/functions/one-way-and-two-way-positions.md).

# One-way and Two-way Positions

### **One-Way Position Mode**

In **one-way mode**, a contract supports **only one active position direction at a time** — either long or short.

* If you place an order in the **opposite direction**, it will first **close** your existing position (partially or fully), then open a new position if the volume exceeds the previous one.

#### **Example:**

You're trading the **BTCUSDT** contract:

* You hold **1 BTC long**.
* You open a **2 BTC short** order.

**Result**:

* Your 1 BTC long is closed.
* A **1 BTC short** position is established.

### **Two-Way Position Mode**

In **two-way mode**, a contract supports **simultaneous long and short positions**. Orders in the opposite direction **do not close existing positions** — instead, they create **independent positions**.

> ⚠️ Positions in opposite directions do **not hedge** each other. Each is exposed to market movements individually.

#### **Example:**

You're trading the **BTCUSDT** contract:

* You hold **1 BTC long**.
* You open a **2 BTC short** order.

**Result**:

* You now hold **1 BTC long** **and** **2 BTC short** at the same time.

***

### **Key Differences**

| Feature                   | One-Way Mode                  | Two-Way Mode                                    |
| ------------------------- | ----------------------------- | ----------------------------------------------- |
| Active Position Direction | One (long or short)           | Both (long and short simultaneously)            |
| Opposite Orders           | Close existing, then open new | Open new without closing                        |
| Hedging Capability        | No                            | No (positions are independent)                  |
| Use Case                  | Simple directional trades     | Advanced strategies (e.g., grid, hedging-style) |